Photo : Collected
In a shocking expose, officials of Prime Finance and Investment Limited (PFIL) stand accused of orchestrating a massive embezzlement scheme, channelling an astonishing Tk 39.5 crore from the private financial sector through cunningly deceptive loan transactions. This scandal has exposed a labyrinthine network of corruption within the institution.
This startling revelation, propelled by an Anti-Corruption Commission (ACC) enquiry, has laid bare the extent of irregularities and financial malfeasance. The core of the scandal revolves around allegations that loans secured approval an astonishing two days prior to the formal submission of applications.
According to the ACC investigation, Syed Tayabul Bashar and Syed Aftabul Bashar, both sons of Syed Najibul Bashar Maizbhandari, a Member of Parliament representing the Chattogram-2 (Fatikchari) constituency and Chairman of the Bangladesh Tariqat Federation, took loans of Tk 39 crore from PFIL. The loan was approved on December 18, 2011 while the applicants applied for loan on December 20, 2011.
The report alleged that KM Khaled, the former chairman of Prime Finance and Investment Limited, along with his son KM Rakib Hossain and nephew Khandkar Mohammad Mostahid were the real mastermind behind the embezzlement.
Stunningly, even the upper echelons of the institution are ensnared in this alleged corruption.
Prime Finance's current directors, including Muslima Shirin, ZM Kaiser, Mohammad Oliuzzaman, and M Shahadat Hossain Kiran, alongside former Managing Director Asad Khan, former Deputy Managing Director Mohammad Ahsan Kabir Khan, and former Executive Vice President Md. Rezaul Haque, all face accusations of being complicit in the embezzlement operation.
The ACC's investigation report chronicles the audacious actions of the accused. Syed Tayabul Bashar, for instance, had applied for a five-year term loan of Tk 20 crore on December 20, 2011, while Syed Aftabul Bashar had sought Tk 19.4 crore, albeit under specific conditions. Astonishingly, these loans were approved with glaring irregularities during a board meeting at Prime Finance, a full 48 hours prior to the official submission of loan applications.
ACC Assistant Director Saiful Islam, upon uncovering the array of irregularities, initiated legal proceedings in February of this year. The case is currently under the scrutiny of Deputy Director Subhash Chandra Dutt.
When asked about the irregularities in light of these developments, K M Khaled told The Daily Messenger, “The matter is under investigations. As such it’s not lawful to attend to queries, as per my knowledge.”
Syed Tayabul Bashar told this correspondent, "KM Khaled advised us to secure the loan, citing our business endeavors. We placed our trust in his counsel. Unfortunately, he betrayed us."
When questioned about the seemingly premature loan approval, Bashar asserted, "Only KM Khaled holds the answers."
In response to inquiries regarding the sizeable sums given to KM Khaled, he expounded, "KM Khaled informed us that since the funds were intended for business purposes, we should entrust them to him with the assurance of returns through business ventures. Thus, we handed over the funds, formalizing our agreement."
KM Rakib Hasan, son of KM Khaled, a director at Getco Group, expressed his lack of insight into the situation, saying, "I am not privy to any pertinent information."
Ahsan Kabir Khan, the managing director of Prime Finance, remained unreachable when attempts were made to contact him.
It should be noted that the report highlighted the conspicuous absence of former Chairman KM Khaled from the pivotal 197th board meeting where the loan approvals transpired. Nonetheless, other prominent figures, including Asad Khan and Mohammad Ahsan Kabir Khan, alongside Mohammad Rezaul Haque, Gulshan Ara Hafeez, and Tazrian Haque, supported by directors such as Muslima Shirin and ZM Kaiser, ratified and sanctioned the loans.
Further investigations unveiled that post the approval of loans, the names of applicants were retroactively inserted into loan documents, aligning seamlessly with records held at Shahjalal Islami Bank. Significantly, KM Khaled devised a shrewd strategy to divert funds into Prime Bank accounts, disguised under the façade of Khaled Textile Mills Limited, a maneuver intended to facilitate the embezzlement.
In response to these revelations, Company Secretary of Prime Finance, Mohammad Zaman, emphasised that the recipients of the loans had dutifully met their interest obligations and pledged land as collateral in Kuakata. Zaman asserted that the land, procured by the company in 2014, could be liquidated to settle the outstanding loans.
Remarkably, Zaman expressed bewilderment concerning the ACC's engagement and the ongoing case, inquiring, "We meticulously submitted a comprehensive report concerning the loans to the ACC. Why the sudden silence and inactivity from their end?"
Regarding the irregularities in loan approvals, Zaman welcomed rigorous scrutiny, affirming, "I am prepared to lay everything bare in person at my office. Transparency is paramount. The process remains ongoing and is progressing towards resolution."
ACC Deputy Director Subhash Chandra Dutt remained inaccessible for commentary on the response provided by Prime Finance Company Secretary Mohammad Zaman.
Further revelations disclosed that on December 29, 2011, Prime Finance issued a cheque in the name of Syed Aftabul Bashar, subsequent to granting a Tk 19.40 crore term loan under his name. Mere days earlier, Aftabul had initiated a current account at Shahjalal Islami Bank's head office. The funds were expedited through a pay order mechanism, with Tk 8,095,395 allocated to Rakib Hassan, Tk 4,731,938 to Khandkar Mohammad Mastahid, and Tk 6,579,3186 to KM Khaled.
The funds designated for KM Rakib Hasan were jointly deposited at Prime Bank's Motijheel branch under the names of both KM Khaled and KM Rakib Hasan. A comparable pattern surfaced for Khandkar M. Mastahid and KM Khaled, with funds placed in their respective Prime Bank Motijheel branch accounts.
In a parallel incident, a Tk 20 crore term loan in the name of Syed Tayabul Bashar was expeditiously followed by transactions on December 29, 2011. On that very day, Tayabul Bashar orchestrated a transfer of Tk 1 crore, 31 lakh, 6 thousand, 219 to KM Khaled through a pay order. In tandem, an additional sum of Tk 18 crore, 68 lakh, 94 thousand, 127 was transferred through a separate pay order to Khaled Textile Mills, a business owned by KM Khaled himself.
TDM/SD
